Small Business Finance News

Survey: Small Business Optimism Up, Cash Flow Concerns Decrease

Written by Ken GaeblerPublished: 6/29/2009

Small business confidence has increased this month while cash flow concerns have decreased, according to the most recent Discover Small Business Watch.

For those who are running a small business, finance news during a recession can make being optimistic a bit difficult. But small business owners are beginning to muster up some confidence, according to the latest Discover Small Business Watch, causing experts to speculate that the recession is rebounding.

The Small Business Watch, which surveys 750 small business owners, found that small business confidence has increased in June - the index climbed 1.9 percent to 80.9 - and cash flow concerns have declined 7 percent from May's record high.

"Cash flow problems are back to levels that are more in line with what we've typically seen since the Watch began nearly three years ago," said Ryan Scully, director of Discover's business credit card. "Cash flow concerns usually erode confidence because they represent something tangible to a business owner, more so than an expectation or perception about the economy."

In addition, the percentage of small business owners who planned to decrease spending on business development in the next six months fell to 51 percent, from 53 percent in May.

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